Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $20 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase.
b. shortage to exist and the market price of roses to decrease.
c. surplus to exist and the market price of roses to increase.
d. surplus to exist and the market price of roses to decrease.
d
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High inflation makes money ________ because ________
A) function better as a store of value; it leads to a more accurate allocation of resources B) function less well as a store of value; the money loses value and therefore has less purchasing power C) function better as a store of value; the money gains value and therefore has greater purchasing power D) function better as a unit of account; money never loses value but it does gain purchasing power in some regions E) function less well as a store of value; it decreases the price level and increases the buying power of money
Current tax rates are insufficient to finance the benefits promised by both the Social Security and Medicare programs. Are these unfunded promises surprising according to economic theory?
a. Yes, political representatives have a strong incentive to levy taxes that are sufficient to cover the cost of all programs they favor. b. No, the unfunded promises reflect the shortsighted nature of the political process. c. Yes, political representatives generally favor balancing the government budget because this is best for the economy. d. No, even though debt financing often makes sense, politicians are reluctant to use it because it will damage their chances of being reelected.
Which of the following statements is correct?
a. In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems. b. Inflation and unemployment are positively related in the short run and in the long run. c. In the short run, unemployment and inflation are negatively related. In the long run they are largely unrelated problems. d. Inflation and unemployment are negatively related in the short run and in the long run.
As a result of the Great Recession, job growth did not resume until
A. September 2008. B. March 2009. C. September 2009. D. March 2010.